Jeffrey D. Wassmer Chairman Rodney W. Oliver Interim Executive Director Virginia Port Authority

Transcription

1 House Appropriations Committee FY2014-FY2016 Capital Outlay Plan January 22, 2014 Jeffrey D. Wassmer Chairman Rodney W. Oliver Interim Executive Director Virginia Port Authority

2 Terminals Serve All of Virginia

3 An Economic Engine for Virginia Mission is to foster and stimulate commerce in Virginia through the Ports of the Commonwealth Port growth accrues jobs and revenue to VA 343,000 port-related jobs statewide $41 billion in business revenues $1.2 billion in state and local taxes Source: 2008 Economic Impact Study by William & Mary Mason School of Business

4 Distribution Center Network

5 Cargo-Handling Growth TEUs

6 TEU What Is It? 20 One 20 container = 1 TEU 40 One 40 container = 2 TEU 53 Port capacity and productivity is often measured in TEUs TEU stands for Twenty Foot Equivalent Unit Originally, containers were 20 long Today, most cargo is moved in 40 containers Typical over the road truck

7 One 40 ft. Container 1,512 Cases $27.98/case = $42,306 = 84,000 Music $11.99/ea = $1,007,160 = 4,500 pairs Prada $368.00/pair = (mid-season sale) $1,656,000 = LED Smart $799/ea = $119,850

8 Top Commodities EXPORT Paper & Paperboard, incl. waste Wood Pulp Logs and Lumber Soybeans & Products Mixed Metal Scrap Grocery Products Pet and Animal Feeds Poultry Meat Tobacco IMPORT Auto Parts Furniture Non Alcoholic Beverages Paper and Paperboard, incl. waste Tobacco Woodenware Rubber, Natural Metalware Granite Steel CY2013 Balance: 54% Export 46% Import Source: PIERS

9 Intermodal Gateway Trucks 62% Rail 34% Barge 4%

10 Increased Rail Volume Rail is the fastest-growing intermodal sector VPA is looking at ways to make moving cargo by rail even more efficient

11 Unique Advantages for Growth 50 foot channels Inexpensive dredging No air draft restrictions Short transit time to ocean channel Suez-class cranes Automated terminals Dual-rail access Inland transportation Expansion plans underway The MSC Chicago set a deep draft record for East Coast ports at the Port of Virginia when it required 49 feet of water while fully loaded

12 Channel Depth Advantage Jacksonville 38 ft 4,500 TEU Wilmington, NC 42 ft Savannah Charleston 45 ft 8,500 TEU NY/NJ (2013) Baltimore Norfolk 50 ft 12,500+ TEU Based on fully loaded vessel Norfolk 55 ft (authorized)

13 Portsmouth Marine Terminal Land Area: 285 acres (land and pier only) Direct rail service with CSX; also Norfolk Southern via Norfolk and Portsmouth Belt Line. Shipside rail service is available

14 Newport News Marine Terminal

15 Port of Richmond and James River Barge Calls at NIT and APMT Three weekly calls between Hampton Roads and Richmond

16 Future Plans & Initiatives

17 Regional Transportation Projects I-64 Widening to Richmond Isle of Wight Third Crossing NIT I-564 Connector Norfolk Portsmouth 460 Relocation Suffolk Chesapeake

18 Budget Requests $10 million in General fund appropriation $6 million for feasibility study and preliminary engineering and design work to dredge Norfolk Harbor from 50ft to 55ft $1.5 million for feasibility study to dredge the Southern Branch of the Elizabeth River from 40 ft to 45 ft $2.5 million to close out the 50 ft channel dredging project 18

19 Budget Requests (cont.) $105.5 million special fund (terminal revenue) bond issue for NIT expansion Authorized in 2013 Acts of Assembly Language clarifications needed only $37 million in special fund (terminal revenue) appropriation to acquire additional container handling equipment 19

20 55 foot Channel

21 Modernized Infrastructure - NIT North Gate Complex and Container Yard Expansion Container Handling Equipment (CHE) Replacement Plan to include: Decreased footprint Increased Efficiency per Container 21

22 Automated Gate - North NIT I 564 Interstate Exchange Direct Interstate access for container outflow Mitigates Hampton Blvd congestion issues I-564 Extension Concept (VDOT) North Gate Site Approx. 16 Acres North Container Yard Expansion Area Approx. 10 Acres 22

23 Change Mode of Operation Rubber Tire Gantry (RTG) Operations Increases efficiency Increases throughput Most Economical Entry into RTG ops Introduction in parallel to Toploader (T/L) Timing of RTG Introduction Additional Rail Equipment Included 23

24 Rubber Tire Gantry (RTG) Power Options Required Infrastructure Full Electric Hybrid Fuel Saver Diesel Electric Diesel Throughput Increase per Acre 24

25 RTG Infrastructure Requirements Diesel Diesel Electric Electric 25

26 Automated Rubber Tire Gantry ARTG Automated RTG (Hybrid) Fully Electric Power Supply 26

27 Traditional Equipment Handler Top Loader Fuel and Power Options 27

28 Yard Tractor (UTR) Green Terminal Tractor Hydrogen Plug-In Hybrid 28

29 Shuttle APM shuttle truck 29

30 Investment Breakdown Phase 1 (60%) Phase 2 (40%) 000's Infrastructure 3,177 17,978 - Infrastructure Gate - 31, RTG 33,340 28,589 17,651 18,163 Top Loader 4,939 4,235 2,615 2,691 UTR 4,733 2,541 1,307 1,345 Shuttle 6, Total Capital Expenditure 52,819 85,295 21,573 22,199 Phase Total 138,114 43,772 30

31 Containers NIT Volume and Capacity 1,400,000 NIT Volume Vs. Capacity 1,200,000 1,000,000 Phase IA FY '15 Phase IB FY '16 Phase II FY '17 800, , , ,000 Rail Optimization Rail Infrastructure Rail Capacity Gate Capacity NIT Rail Volume NIT Gate Volume 31

32 NIT Investment Plan 32

33

34 Booms Down

35 Jobs Up

36 Port Proud Returning Value to Our Shareholders

37 CONCLUSION Excellence in Operations Fiscal Responsibility Growth Value to Our Commonwealth 37

38 Thank You

39 Appendix Additional Information

40 Top Trading Partners EXPORT China Germany India Belgium Netherlands Brazil United Kingdom Japan Saudi Arabia Indonesia IMPORT China Germany India Brazil Italy Spain Vietnam Netherlands Belgium Indonesia Source: PIERS

41 Accessible Mid-Atlantic Location Less than 6,600 TEUs ,000 TEUs 33,001-88,000 TEUs 88, ,000 TEUs 198, ,000 TEUs

42 New route is double-stack and eliminates more than 230 miles Opened September 2010

43 Norfolk Southern Greensboro Rail Service Greater access to N.C. markets Six-day-a-week rail service Faster and more frequent truck turns Lowest environmental impact compared to moving cargo via other Southeast ports

44

45 APM Terminals

46 Craney Island Eastward Expansion Artist Rendering at Full Build-out